Export-Import is a huge industry in India. There are a lot of small vendors in many towns in India that deal with exporting a variety of items to people abroad. NRIs tie up with these vendors to either begin a new business or expand their existing business, thus benefiting both the parties.
Just like any business, there is a high risk involved in running a business that involves interacting with a new business partner in India. Unhappy importers have often been seen suffering due to international trade fraud, where they pay the money and do not receive the material or receive spurious materials.
Recently Sheila (name changed) wanted to begin a garments business in the UK. She did some Google search and found the website an exporter in Hyderabad. The exporter had a great website. She called on the number, negotiated the price and transferred the amount and waited for the goods to arrive in the UK. Unfortunately, her consignment never came through, the trader stopped responding and she got duped of all her savings.
In another case, spurious materials were delivered to an NRI businessman, which severely affected his business. This has happened with many businesses who cannot do the proper due diligence while engaging with the business vendors in India. This is a huge loss for the NRI who invests time and money to deal with the vendor in India.
Fraudulent dealings, not responding to calls or emails are all disappointing and frustrating experiences. Flying to India to catch hold of the fraudster or litigating for years to get justice is not the recourse busy business professionals prefer.
Trust is a very important aspect for any business and you need to be optimistic and cautious especially if you do not know the trader on a personal level. People in different countries, dealing with different businesses, cannot always be present for the final transactions and may have different legalities affecting the nature of their business.
It is important for you, as an importer, to check all the credentials of your exporter in order to fully trust him. NRIs rely on their friends and family for support to help them the initial setup and hence you may not always get the correct picture.
Sherlock Zone has made it easy to conduct due diligence verification and make informed decisions sitting in the comfort of homes.
While bigger corporate firms have legal contracts in place and approved list of vendors, individuals find it difficult to find a reliable vendor. Sherlock Zone has brought the best risk management professionals on one platform for individuals, solopreneurs, startups and small-medium businesses to get due diligence reports in a click. The professionals on the platform specialize in risk mitigation and can do all the groundwork for you before you finally decide the vendor, exporter or your business partner.